Freight market update - 26 March 2025

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• Seven regional carriers based in Asia have partnered to launch a new weekly express service between Asia and Mexico.

• The new service will add at least 15,000 TEUs of capacity to the growing trade route.

• Hapag Lloyd has announced a general rate increase (GRI) on shipments from Asia to multiple destinations, including South America's East and West Coasts, Mexico, Central America, and the Caribbean, starting April 1.

• Panelists at an AMICIE seminar in Singapore discussed geopolitical risks in international trade and shipping.

• SeaLead Singapore’s COO, Chow Kitwei, addressed the potential impact of the USTR’s proposed $1.5 million tariffs on China-made ships entering U.S. ports.

• TMC Marine reports a significant rise in container losses due to vessels avoiding the Red Sea.

• MSC, through its subsidiary Terminal Investment Limited (TiL), has partnered with BlackRock to acquire nearly 80% of Hutchison Port Holdings' overseas assets in a $22.8 billion deal.

• The Gemini Cooperation between Maersk and Hapag-Lloyd is experiencing network disruptions.

• Proposed entrance fees of up to $1.5 million per vessel could impact 98% of ships calling at U.S. ports.

Read on for more in-depth updates.

Asia → North America

US/CA

Transpacific Trends and Market Updates

• Seven regional carriers based in Asia have partnered to launch a new weekly express service between Asia and Mexico.
• The new service will add at least 15,000 TEUs of capacity to the growing trade route.
• Trade volumes between Asia and Mexico surged by 18.9% year-over-year in the first nine months of 2024.
• The first sailing is scheduled for April 30 from Shanghai, with stops in Qingdao, Busan, and Manzanillo.
• Transit times for the service will range from 21 to 25 days, with a full round-trip voyage taking 49 days.
• Participating carriers include Emirates Shipping Lines, TS Lines, SeaLead, Regional Container Lines, Sinotrans Container Line, Korea Marine Transport Company, and Sinokor Merchant Marine.
• This marks the first time all seven carriers are entering the Mexico trade market together.
• Each carrier will contribute one vessel, with capacities between 2,200 TEUs and 2,800 TEUs.
• The expansion coincides with an expected decline in China-Mexico freight rates next month.
• Traditional long-haul carriers, including Ocean Network Express (ONE), are also adding capacity on this route.
• At the same time, ocean carriers are pushing for higher freight rates.
• Hapag Lloyd has announced a general rate increase (GRI) on shipments from Asia to multiple destinations, including South America's East and West Coasts, Mexico, Central America, and the Caribbean, starting April 1.
• Panelists at an AMICIE seminar in Singapore discussed geopolitical risks in international trade and shipping.
• SeaLead Singapore’s COO, Chow Kitwei, addressed the potential impact of the USTR’s proposed $1.5 million tariffs on China-made ships entering U.S. ports.
• Chow emphasized that smaller U.S. ports would be disproportionately affected by the tariffs.
• Major ports like New York, New Jersey, and Long Beach could absorb the costs, but smaller ports like Jacksonville would face significantly higher costs per container.
• The financial strain could force carriers to reconsider their service structures, leading to fewer ship calls at smaller ports.
• Chow stated that the new tariffs would likely alter liner service structures, including ship deployment strategies.
• He predicted a short-term spike in trade before the tariffs take effect.
• In the long term, the tariffs could lead to reduced efficiency and lower overall shipping volumes.
• Freight rates declined in the second half of March, leading carriers to remove Peak Season Surcharges on long-term contracts.
• April rates are yet to be finalized, but early signs indicate a possible increase.
• Demand has remained stable without the expected post-Lunar New Year surge.
• Carriers are maintaining capacity, with vessel deployment staying above 80%.
• The industry faces potential new U.S. fees on Chinese-built and -operated vessels.
• Proposed entrance fees of up to $1.5 million per vessel could impact 98% of ships calling at U.S. ports.
• Industry groups warn the fees could disrupt trade flows and drive up consumer prices.
• Atlantic Container Line (ACL) has stated it may exit U.S. operations if the proposals are implemented due to unsustainable cost increases.

Turkey → North America

• TMC Marine reports a significant rise in container losses due to vessels avoiding the Red Sea.
• Three major incidents off South Africa between July and August 2024 resulted in 200 containers lost overboard.
• Extreme weather conditions have been identified as the primary cause of these losses.
• TMC’s Group CEO, Simon Burthem, noted that three incidents in the same area within a short period is highly unusual.
• Rerouting around Africa adds at least 3,500 miles and 10 to 14 days to transit times.
• Longer voyages increase financial burdens, fuel costs, and potential salvage expenses.
• Burthem described these waters as some of the most dangerous, with rogue waves causing ships to roll by up to 20 degrees.
• Environmental risks are rising, as seen in a recent incident where plastic pellets from a collision washed up on UK beaches.
• Despite a ceasefire, security concerns in the Red Sea continue to force ships onto longer, riskier routes around Africa.

North America → Turkey

• Hapag-Lloyd, MSC, and CMA CGM have invested in terminals to enhance service control.
• MSC, through its subsidiary Terminal Investment Limited (TiL), has partnered with BlackRock to acquire nearly 80% of Hutchison Port Holdings' overseas assets in a $22.8 billion deal.
• The acquisition includes key strategic terminals near the Panama Canal.
• CMA CGM has pledged $20 billion to expand its U.S. operations, including increasing the APL fleet from 10 to 30 vessels and upgrading port infrastructure in Houston, Los Angeles, and New York City.
• Hapag-Lloyd, via Hanseatic Global Terminal, has taken over operations at a terminal in Le Havre.
• The Gemini Cooperation between Maersk and Hapag-Lloyd is experiencing network disruptions.
• It remains uncertain whether the Gemini Cooperation can achieve its 90% schedule reliability goal.

Terminal Updates

• Vessels heading to North America via the North Atlantic Sea are expected to have a change in schedule due to severe weather conditions.

New York:

• 2 days waiting time expected for APMT, 6 hours waiting time at Maher Terminals, and up to 2 days at Port Liberty Terminal Bayonne.
• Average gate turn times are 43 / 63 minutes for single and double transactions respectively.
• APMT - new cranes arrived and are in process of being commissioned.
• Berth space will still be limited but 2 vessels will now be able to be worked simultaneously.

Norfolk:

• Waiting time for a berth is up to 0.75 days for Norfolk International Terminal and 0.5 days for Virginia International Gateway this week.
• Average gate turn times are 32 / 50 minutes for single and double transactions respectively for Norfolk International Terminal.
• Average gate turn times are 36 / 62 minutes for single and double transactions, respectively at Virginia International Gateway.
• One crane is out of service.
• However, it is expected to be back working next month.

Charleston Terminal:

• 1 day waiting time for Wando Welch Terminal and 6 hours waiting time for North Charleston Terminal.
• Average truck turn times are 23 minutes at Wando Welch Terminal and 21 minutes at North Charleston Terminal.
• Average truck turn time at Leatherman is 16 minutes.

Savannah:

• The average waiting time for vessel berth at the terminal is 3.0 days for class 1 and 4.5 days for class 2 vessels.
• Average gate turn times are 35 minutes for single transactions and 57 minutes for double transactions.
• Import dwell time is 4.5 days.
• Rail dwell time is 1.1 days.

Houston:

• Up to 2.5 days waiting time for vessel berthing at Barbours Cut Terminal and no waiting time at Bayport Container Terminal.
• Average gate turn times at Barbours Cut Container Terminal are 35 minutes for single transactions and 54 minutes for double transactions.
• Average gate turn times at Bayport Container Terminal are 30 minutes for single transactions and 48 minutes for double transactions.
• Loaded import dwell is 3.8 days at Barbours Cut and 3.7 days at Bayport.

Oakland:

• Average import deliveries can take up to 5 days at TraPac and 4 days at OICT.
• Average gate turn times are 94 minutes at OICT and 80 minutes at TraPac.
• TRAPAC restricted to 1 crane on berth 30 until further notice.
• OICT has 2 cranes out of order.

Seattle-Tacoma:

• No waiting time at Husky and no waiting time at Washington United terminal at Tacoma.
• No waiting time in Seattle.
• Import rail dwell are 2.7 days at Husky and 3 days at T18.
• The average gate turn times are as follows: 45 minutes for T18, 25 minutes for Washington United Terminal, and 64 minutes for Husky.
• Husky is offering continuous hoot gates. Next week’s gates will be March 25,26 and 27, 2025, for most transaction types.

Los Angeles/Long Beach:

• Port of Los Angeles dwell time for local import cargo is 2.8 days.
• On-dock rail dwell is 6.3 days.
• Import units on the street are averaging at 4.3 / 6.3 days for 20 ft and 40+ ft containers respectively.
• Port of Long Beach dwell times for local imports remain at 4-8 days.
• The average terminal gate turn time is between 51-60 minutes, depending on the terminal.

Chassis Pools

All pools are operating as normal except:

• Chicago – Constrained on 20’ and 40’ chassis.
• Nashville – Constrained on 40’ Chassis.
• St. Louis – Deficit on 20’ chassis.

Intermodal Operations

Truck power can be secured within 1-3 days for the majority of locations, including marine terminals, rail ramps, and depots.

Port Status

Final Thoughts

In light of the latest updates and trends, the market is currently in the course of showing robust performance and is equipped with ample capacity and resources. Individuals and businesses involved in import/export activities must stay well-informed about market dynamics and strategies to make informed decisions.

To ensure a smooth and hassle-free experience with your import/export operations, it is recommended to seek guidance from industry experts. Taking proactive measures and staying proactive in your approach will help you navigate the market effectively. We greatly appreciate your continued readership and encourage you to subscribe to our weekly market updates to stay abreast of the latest developments and insights.